S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2829
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 Introduced  by M. of A. GOTTFRIED, SEPULVEDA -- Multi-Sponsored by -- M.
   of A.  BARNWELL, CARROLL -- read once and referred to the Committee on
   Aging
 
 AN ACT to amend the real property tax law, in relation to  allowing  for
   increases  in  the  amount  of  income  property  owners  may earn for
   purposes of qualification for certain tax exemptions

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph (a) of subdivision 3 of section 467 of the real
 property tax law, as amended by chapter 259 of  the  laws  of  2009,  is
 amended to read as follows:
   (a) if the income of the owner or the combined income of the owners of
 the  property  for the income tax year immediately preceding the date of
 making application for exemption  exceeds  the  sum  of  three  thousand
 dollars,  or  such  other  sum not less than three thousand dollars [nor
 more than twenty-six thousand dollars beginning July first, two thousand
 six, twenty-seven thousand dollars beginning July  first,  two  thousand
 seven,  twenty-eight thousand dollars beginning July first, two thousand
 eight, and twenty-nine], FIFTY thousand dollars  beginning  July  first,
 two  thousand [nine] SIXTEEN, as may be provided by the local law, ordi-
 nance or resolution adopted pursuant to this section; PROVIDED, HOWEVER,
 BEGINNING JULY FIRST, TWO THOUSAND NINETEEN AND EVERY TWO  YEARS  THERE-
 AFTER, THE MAXIMUM ALLOWABLE INCOME SHALL INCREASE BY THE PRODUCT OF THE
 AVERAGE  ANNUAL  PERCENTAGE  CHANGES IN THE CONSUMER PRICE INDEX FOR ALL
 URBAN CONSUMERS (CPI-U) AS PUBLISHED BY THE UNITED STATES DEPARTMENT  OF
 LABOR  BUREAU OF LABOR STATISTICS FOR THE TWO YEAR PERIOD ROUNDED TO THE
 NEAREST ONE THOUSAND DOLLARS.   Income tax year shall  mean  the  twelve
 month  period  for  which  the  owner or owners filed a federal personal
 income tax return, or if no such return is  filed,  the  calendar  year.
 Where  title is vested in either the husband or the wife, their combined
 income may not exceed such sum, except where the  husband  or  wife,  or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02692-01-7

 A. 2829                             2
 
 ex-husband or ex-wife is absent from the property as provided in subpar-
 agraph  (ii)  of paragraph (d) of this subdivision, then only the income
 of the spouse or ex-spouse residing on the property shall be  considered
 and  may  not exceed such sum. Such income shall include social security
 and retirement benefits, interest, dividends, total gain from  the  sale
 or  exchange  of  a capital asset which may be offset by a loss from the
 sale or exchange of a capital asset in the same  income  tax  year,  net
 rental  income, salary or earnings, and net income from self-employment,
 but shall not include a return of capital, gifts, inheritances, payments
 made to individuals because of their status as victims  of  Nazi  perse-
 cution,  as  defined in P.L. 103-286 or monies earned through employment
 in the federal foster grandparent program and any such income  shall  be
 offset by all medical and prescription drug expenses actually paid which
 were  not reimbursed or paid for by insurance, if the governing board of
 a municipality, after a public hearing, adopts a local law, ordinance or
 resolution providing therefor.    Furthermore,  such  income  shall  not
 include  the  proceeds  of  a reverse mortgage, as authorized by section
 six-h of the banking law,  and  sections  two  hundred  eighty  and  two
 hundred  eighty-a  of  the  real  property  law; provided, however, that
 monies used to repay a reverse mortgage may not be deducted from income,
 and provided additionally that any interest or dividends  realized  from
 the  investment of reverse mortgage proceeds shall be considered income.
 The provisions of this paragraph notwithstanding, such income shall  not
 include  veterans disability compensation, as defined in Title 38 of the
 United States Code provided the governing board  of  such  municipality,
 after  public  hearing,  adopts  a  local  law,  ordinance or resolution
 providing therefor.  In computing net rental income and net income  from
 self-employment  no  depreciation  deduction  shall  be  allowed for the
 exhaustion, wear and tear of real or  personal  property  held  for  the
 production of income;
   § 2. This act shall take effect immediately.